How commercial awareness shapes client service: real estate vs private client

The October 2024 Autumn Budget made me realise the importance of commercial awareness in practice. Before the Budget, there was a flurry of instructions regarding property sales, due to uncertainty surrounding CGT (Capital Gains Tax). Clients wanted to complete sales under the existing CGT rate, reliefs and allowances. As a result, the department required a high level of commercial awareness to offer the best advice to our clients. 

It’s not just the Budget that real estate lawyers need to be aware of,  legislation is always under review. For example, The Law Commission had just finished consulting property lawyers on potential reforms to security of tenure. At the same time, the Government had closed its consultation about EPC reform (Energy Performance Certificates). Currently, it is illegal to let a property that has a rating of F or G without an exception and improving a property’s energy efficiency is often a costly endeavour. Lawyers need to be highly perceptive to changing political policy or macro-environmental issues impacting the sector so that they can effectively advise their clients. 

Real estate clients are often a company or commercial landlords rather than individuals. Real estate lawyers not only have to translate the law into practice; they need to interpret it through a business lens.

In contrast, the private client area of law typically involves advising individuals. Clients come from all backgrounds, meaning you’ll encounter a wide range of life experiences, perspectives and needs. Whether you're advising a business owner on succession planning, assisting a newly-married couple with their wills and estate planning, or working with an executor to navigate a difficult inheritance situation, no two clients are the same. This variety keeps your work dynamic and intellectually stimulating.

Commercial awareness enables private client lawyers to stay current with market conditions and regulatory changes. This enables them to provide proactive advice in a rapidly changing legal environment and spot emerging trends that might affect clients, such as changes in inheritance laws, property market fluctuations or shifts in tax policy. This was particularly prominent during the Autumn Budget announcement. The introduction of Inheritance Tax (IHT) on private pensions and the cap on business property relief sparked questions and raised concerns for clients about how this would affect their estate planning. 

By identifying potential risks and offering advice that anticipates and addresses these issues before they become legal problems, private client lawyers can enhance trust and can help foster long-term client relationships. 

Working with individuals can create a more personal connection to your work, as you’re directly involved in clients’ personal and family lives, helping them manage significant life events such as estate planning, inheritance and wealth management. Developing empathy and understanding your client's emotions and goals can be deeply rewarding and help you approach legal problems from a client-centred perspective.

One of the key benefits of seat rotation at Russell-Cooke is the opportunity to discover which area of law you truly enjoy. The firm advises a mix of commercial, not-for-profit, regulatory and private clients, ensuring that trainees gain experience working with diverse clients across various areas of law. Commercial awareness is crucial in every practice area as it helps you provide effective legal advice. Exposure to different clients and areas of law throughout the training journey enables trainees to develop the skills needed to become commercially aware solicitors.

Jessica Herring has since moved into her second seat which is in the trust, will and estate disputes team, whilst Helena Macpherson has moved into her second seat which is in the real estate, planning and construction team.